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Zhejiang Sanhua Intelligent Controls Co., Ltd.
(2050)
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Rating:65Neutral
Price Target:
HK$33.00
▲(3.64% Upside)
Action:Reiterated
Date:07/04/26
The score is primarily supported by strong underlying financial performance (healthy margins, conservative leverage, and solid ROE), but is meaningfully weighed down by expensive valuation (high P/E and low yield). Technicals are mixed, with a short-term improvement but a weaker medium-to-longer-term trend and negative MACD.
Positive Factors
Profitability & Margins
Sanhua's sustained TTM margins (gross ~28.8%, EBIT ~16%, net ~13.1%) indicate durable operational efficiency and pricing power in component manufacturing. For 2-6 months this supports margin resilience across cycles given higher-value electronic/precision product mix and OEM customer stickiness.
Negative Factors
Moderate Cash Conversion & Volatility
Free cash flow converts to only ~49% of net income and reported cash coverage is low (~0.39), with prior years showing negative FCF. This uneven conversion raises structural risk that earnings growth may not reliably translate into cash for investing or distributions over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability & Margins
Sanhua's sustained TTM margins (gross ~28.8%, EBIT ~16%, net ~13.1%) indicate durable operational efficiency and pricing power in component manufacturing. For 2-6 months this supports margin resilience across cycles given higher-value electronic/precision product mix and OEM customer stickiness.
Read all positive factors
Zhejiang Sanhua Intelligent Controls Co., Ltd. (2050) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$184.57B
Dividend YieldN/A
Average Volume (3M)22.89M
Price to Earnings (P/E)42.4
Beta (1Y)2.16
Revenue Growth8.72%
EPS GrowthN/A
CountryHK
Employees19,090
SectorGeneral
Sector StrengthN/A
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)1.07
Shares Outstanding476,536,400
10 Day Avg. Volume22,409,204
30 Day Avg. Volume22,886,251
Financial Highlights & Ratios
PEG Ratio0.81
Price to Book (P/B)4.28
Price to Sales (P/S)3.93
P/FCF Ratio70.04
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.27
Revenue Forecast (FY)HK$40.00B
Zhejiang Sanhua Intelligent Controls Co., Ltd. Business Overview & Revenue Model
Company Description
Zhejiang Sanhua Intelligent Controls Co.,Ltd. operates globally, focusing on the research, manufacturing, and distribution of electrical components for refrigeration, air conditioning, and automotive applications. Their diverse product lineup incl...
How the Company Makes Money
Sanhua primarily makes money by selling HVAC&R and thermal-management components to equipment manufacturers (OEMs). Its revenue model is centered on B2B product sales where it supplies high-volume, specification-driven parts—such as electronic exp...
Zhejiang Sanhua Intelligent Controls Co., Ltd. Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
82
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Mar 2024 | Mar 2023 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 34.51B | 34.51B | 29.74B | 27.02B | 24.16B | 19.65B |
| Gross Profit | 9.96B | 9.88B | 8.13B | 7.42B | 6.19B | 4.98B |
| EBITDA | 6.82B | 6.62B | 4.84B | 4.70B | 3.50B | 2.88B |
| Net Income | 4.53B | 4.52B | 3.30B | 3.21B | 2.91B | 2.07B |
Balance Sheet | ||||||
| Total Assets | 49.36B | 49.41B | 36.35B | 31.89B | 31.64B | 28.98B |
| Cash, Cash Equivalents and Short-Term Investments | 15.52B | 15.42B | 5.25B | 6.58B | 5.98B | 6.80B |
| Total Debt | 2.24B | 2.46B | 3.84B | 2.46B | 7.52B | 7.50B |
| Total Liabilities | 16.43B | 17.37B | 16.84B | 13.83B | 14.38B | 15.17B |
| Stockholders Equity | 32.63B | 31.75B | 19.30B | 17.89B | 12.76B | 13.68B |
Cash Flow | ||||||
| Free Cash Flow | 2.82B | 1.94B | 1.08B | 978.50M | -436.49M | -371.96M |
| Operating Cash Flow | 5.76B | 5.09B | 4.46B | 3.72B | 2.57B | 1.55B |
| Investing Cash Flow | -4.59B | -3.67B | -3.54B | -1.21B | -2.50B | -4.98B |
| Financing Cash Flow | 7.39B | 7.56B | -1.02B | -1.09B | -839.08M | 2.78B |
Zhejiang Sanhua Intelligent Controls Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | HK$16.16B | 21.34 | 13.39% | 3.23% | 8.72% | 12.71% | |
73 Outperform | HK$29.94B | 7.74 | 14.78% | 3.32% | 9.96% | 7.15% | |
65 Neutral | HK$184.57B | 42.45 | 13.07% | ― | 8.72% | ― | |
60 Neutral | HK$9.83B | 12.62 | 9.65% | 8.66% | -8.30% | -13.14% | |
58 Neutral | HK$7.41B | 7.80 | 8.89% | 2.50% | 12.91% | 76.99% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
51 Neutral | HK$2.03B | 7.71 | -69.18% | ― | -10.60% | ― |
* General Sector Average
HK:2050
Zhejiang Sanhua Intelligent Controls Co., Ltd.
27.56
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21.66%
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18.52
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8.11
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171.78%
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18.79
0.18
0.97%
Zhejiang Sanhua Intelligent Controls Co., Ltd. Corporate Events
Sanhua Adds New Members to Strategy and ESG Committee to Bolster Governance
Jun 30, 2026
Zhejiang Sanhua Intelligent Controls Co., Ltd., a Hong Kong-listed Chinese joint stock company in the intelligent controls industry, maintains a Board structure that includes executive, non-executive and independent non-executive directors to over...
Zhejiang Sanhua Details Board and Committee Structure
Jun 30, 2026
Zhejiang Sanhua Intelligent Controls Co., Ltd. has announced the current composition of its board of directors, detailing executive, non-executive, and independent non-executive members and confirming Zhang Yabo as chairman. The disclosure undersc...
Zhejiang Sanhua’s 2025 AGM Passes All Resolutions with Strong Shareholder Turnout
Jun 29, 2026
Zhejiang Sanhua Intelligent Controls Co., Ltd. held its 2025 annual general meeting on June 29, 2026, in Shaoxing, Zhejiang, with all directors attending in person or electronically and all proposed resolutions duly passed. The meeting recorded sh...
Zhejiang Sanhua Announces 2025 Final Dividend and Sets Hong Kong Payment Details
Jun 29, 2026
Zhejiang Sanhua Intelligent Controls Co., Ltd. has declared a final ordinary cash dividend of RMB 2.8 per 10 shares for the financial year ended 31 December 2025, with shareholder approval obtained on 29 June 2026. For its Hong Kong share register...
Zhejiang Sanhua Details Board and Committee Structure to Strengthen Governance
Jun 29, 2026
Zhejiang Sanhua Intelligent Controls Co., Ltd. has detailed the composition of its board, naming four executive directors, three non-executive directors, and four independent non-executive directors, including a lead independent director. This str...
Zhejiang Sanhua reshapes board as independent director role ends, proposes Shi Jianhui as non-executive
Jun 5, 2026
Zhejiang Sanhua Intelligent Controls announced that independent non-executive director Shi Jianhui will step down from his role and associated board committee positions when his current term ends on June 7, 2026, in line with Chinese rules limitin...
Zhejiang Sanhua Overhauls Board Structure and Governance Committees
Jun 5, 2026
Zhejiang Sanhua Intelligent Controls has updated the composition of its board of directors, effective June 8, 2026, confirming a mix of executive, non-executive and independent non-executive directors, with Mr. Zhang Yabo serving as chairman. The ...
Zhejiang Sanhua Moves to Expand Board and Amend Articles for Governance Upgrade
Jun 5, 2026
Zhejiang Sanhua Intelligent Controls has proposed amendments to its Articles of Association to reflect a planned expansion of its board to eleven members. The move follows the scheduled departure of independent non-executive director Shi Jianhui a...
Zhejiang Sanhua Sets Broad Governance and Capital Agenda for 2025 AGM
Jun 5, 2026
Zhejiang Sanhua Intelligent Controls has convened its 2025 annual general meeting for June 29, 2026, in Xinchang, Zhejiang, setting out a comprehensive agenda that covers corporate governance, financial reporting and capital management. Shareholde...
Zhejiang Sanhua Sets Final 2025 Dividend Schedule and Tax Terms
Jun 5, 2026
Zhejiang Sanhua Intelligent Controls Co., Ltd. has updated details of its final cash dividend for the financial year ended 31 December 2025, declaring a payout of RMB 2.8 per 10 shares. The company has set 29 June 2026 for shareholder approval, wi...
Sanhua Intelligent Controls Posts Strong Q1 Cash Flow Despite Softer Returns on Equity
Apr 29, 2026
Zhejiang Sanhua Intelligent Controls reported modest top-line growth for the first quarter of 2026, with revenue rising 1.36% year-on-year to RMB 7.77 billion, while net profit attributable to shareholders increased 2.68% to RMB 927.6 million. Pro...
Zhejiang Sanhua Revamps Company Secretariat and Governance Roles
Apr 22, 2026
Zhejiang Sanhua Intelligent Controls Co., Ltd. announced board-approved changes to its corporate governance team, with joint company secretary Hu Kaicheng and joint company secretary, authorised representative and Hong Kong process agent Ho Wing N...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.